Adjust an employee's leave balance
Edit an employee's annual leave balance in their payslip during a pay run, so they receive the correct entitlements.
When do I adjust an employee's leave balance?
- The employee's base hours change
- If an employee changes the number of weekly hours that they work and they've annual leave remaining, you'll need to run a nil pay and adjust the annual leave balance.
- For example, an employee works a 40-hour week and they've passed their anniversary date so have four weeks (160 hours in Xero) annual leave entitlement. As they've already taken two weeks (80 hours), they have two weeks (80 hours) remaining. If they then reduce their hours to a 20-hour week, the remaining weeks now total 40 hours and you'll need to deduct 40 hours from the annual leave balance.
- Transferring annual leave
- If an employee becomes entitled to annual leave while on parental leave or within 12 months of returning from parental leave, you'll need to transfer the annual leave on their payslip to annual parental leave
- If an employee wants to cash up a portion of their annual leave, you'll need to transfer the annual leave on their payslip
- The employee's holiday pay balance is higher or lower than expected
If your employee’s holiday pay balance is too high or too low, even negative, it’s likely either:
- You haven't entered the opening Holiday Pay balance correctly
- Your employee’s opening holiday pay balance doesn’t equal the percentage of gross earnings you expected to see since their last anniversary date
Create a leave type and assign leave
Depending on the leave you're transferring, you might have to create a new leave type and assign it to the employee before you can transfer it in the employee's payslip.
- Once you've created any required leave type and assigned it to the employee, create an unscheduled pay run.
- From the draft pay run, click the name of the employee to open their details.
- Under Leave Accruals in the relevant leave line(s), enter the leave adjustment amount.
- Click Save & Close.
- Process the pay run.